MUTUAL FUNDS: DIFFERENT TYPES OF FUNDS

Exchange Traded Funds:

An exchange-traded fund (ETF) is an investment fund. It is traded on stock exchanges, like stocks. An ETF holds assets like stocks, commodities, or bonds and customarily operates with associate degree arbitrage mechanism designed to hold its commerce on the point of its web plus worth.

Index Funds:

An index fund is a type of mutual fund with a portfolio constructed to match or track the components of a market index like the Standard & Poor’s 500 Index. An index mutual fund provides broad market exposure. It actually low operating expenses and low portfolio turnover.

Specialty Funds:

Specialty funds are a type of mutual fund that focuses their injustice investing within a specific industry or sector of the economy. Some specialty funds cover broad sectors. While others direct their investments on an industry group within a sector.

Global/International Funds:

A global fund may be a fund that invests in firms placed anyplace within the world together with the investor’s own country. A global fund identifies the best investments from a global universe of securities. Global funds may also be passively managed.

Equity Funds:

An equity fund may be an investment firm that invests in stocks. It will be actively or passively (index fund) managed. Equity funds are also known as stock funds. Stock mutual funds are categorized according to company size, the investment style of the holdings in the portfolio and geography.

Money Market Funds:

A market fund is associate degree open-ended investment firm that invests in short-run debt securities like USA Treasury bills and cash equivalent. Money market funds are widely held as being as safe as bank deposits yet providing a higher yield.

Income Funds:

Income funds are mutual funds, that look for, to generate an income stream for shareholders by investing in securities that offer dividends or interest payments. This type of funds can hold bonds, preferred stock, common stock or even real estate investment trusts (REITs).

Bond Funds:

A bond fund may be a fund that invests shackled, or other debt securities. Bond funds can be contrasted with stock funds and also money funds. Bond funds pay periodic dividends that include interest payments on the fund’s underlying securities and periodic realized capital appreciation.

Balanced Funds:

A balanced fund may be a investment firm that usually keeps to a 50-50 mixture of stock and bond investments. The objective of those funds is to supply a balanced mixture of safety, financial gain and capital appreciation.

So, these are some common types!

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